Ambarella (NASDAQ:AMBA) & GSI Technology (NASDAQ:GSIT) Head to Head Comparison

GSI Technology (NASDAQ:GSIT) and Ambarella (NASDAQ:AMBA) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for GSI Technology and Ambarella, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSI Technology	1	0	1	0	2.00
Ambarella	1	6	5	0	2.33

GSI Technology presently has a consensus target price of $9.00, suggesting a potential upside of 184.45%. Ambarella has a consensus target price of $89.56, suggesting a potential upside of 60.18%. Given GSI Technology’s higher probable upside, research analysts plainly believe GSI Technology is more favorable than Ambarella.

Profitability

This table compares GSI Technology and Ambarella’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GSI Technology	-62.90%	-21.39%	-17.73%
Ambarella	-13.48%	-10.03%	-7.73%

Institutional and Insider Ownership

33.1% of GSI Technology shares are held by institutional investors. Comparatively, 82.1% of Ambarella shares are held by institutional investors. 16.6% of GSI Technology shares are held by insiders. Comparatively, 4.5% of Ambarella shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

GSI Technology has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500. Comparatively, Ambarella has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500.

Valuation & Earnings

This table compares GSI Technology and Ambarella”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSI Technology	$25.12 million	4.84	-$13.25 million	($0.46)	-6.88
Ambarella	$390.70 million	6.32	-$75.86 million	($1.29)	-43.34

GSI Technology has higher earnings, but lower revenue than Ambarella. Ambarella is trading at a lower price-to-earnings ratio than GSI Technology, indicating that it is currently the more affordable of the two stocks.

Summary

Ambarella beats GSI Technology on 9 of the 14 factors compared between the two stocks.

About GSI Technology

GSI Technology, Inc. designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. It offers associative processing unit products, which are focuses on applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. The company also provides static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs, a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. In addition, it offers radiation-hardened and radiation-tolerant SRAMs for military/defense and aerospace applications, such as networking satellites and missiles. The company's products are used as components in its original equipment manufacturer customers' products, including routers, switches, and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; test and measurement applications consisting of high-speed testers; automotive applications comprising smart cruise control; medical applications, including ultrasound and CAT scan equipment; and audio/video processing. It markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.

About Ambarella

Ambarella, Inc. develops semiconductor solutions that enable high-definition (HD) and ultra HD compression, image signal processing, and artificial intelligence processing worldwide. The company's system-on-a-chip designs integrated HD video processing, image processing, artificial intelligence computer vision algorithms, audio processing, and system functions onto a single chip for delivering video and image quality, differentiated functionality, and low power consumption. Its solutions are used in automotive cameras, such as automotive video recorders, electronic mirrors, front advanced driver assistance system camera, cabin monitoring system and driver monitoring system camera, and central domain controllers for autonomous vehicle; enterprise and public class, and home security camera; and robotics and industrial application, including identification/authentication cameras, robotic products, and sensing cameras, as well as cameras for the enterprise, home, public spaces, and consumer leisure comprising wearable body cameras, sports action cameras, social media cameras, drones for capturing aerial video or photographs, video conferencing, and virtual reality applications. The company sells its solutions to original design manufacturers and original equipment manufacturers through its direct sales force and distributors. Ambarella, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.